EBRD to lend $64.4 million for its first wartime biofuels finance in Ukraine

In the UK, the European Bank for Reconstruction and Development (EBRD) is extending a $64.4 million loan to Ukrainian limited liability company Lan-Oil LLC, in its first financing for the construction of a greenfield and privately owned biofuels project in Ukraine since Russia began its full-scale war on the country more than two years ago.

The funding will be backed by a financial guarantee from the European Union provided under Pillar II of the new Ukraine facility, the Ukraine Investment Framework.

This forms part of the new $161 million Ukraine Investment Framework Hi-Bar guarantee program, signed at the Ukraine Recovery Conference (URC) in Berlin. This program supports both new and existing climate mitigation technologies, in particular in the energy sector, in line with the EU’s detailed Ukraine Plan.

This project will contribute both to Ukraine’s energy security and the decarbonization of the sector by building a domestic source of fuel supply, bioethanol, with 70% lower greenhouse gas emissions than traditional fuel.

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